Kobe Steel’s Chinese headquarters will open on 1 April 2011. Kobelco (China) Holding Co., Ltd., as the company will be called, is the first headquarters established in China by a Japanese steelmaker. Based in Luwan, Shanghai, the wholly-owned subsidiary of Kobe Steel is capitalized at USD 50.14 million. In order to form the new company, Kobe Steel added USD 50 million to the existing USD 140,000 capital of Kobe Steel Consulting Co., Ltd. This amount of registered capital will allow the company to make direct investments in China. The new headquarters will focus on finance initiatives for financing, mergers and acquisitions, and cash management. It will also concentrate on strengthening group governance and risk management, in addition to supporting group companies in China. The Kobe Steel Group currently has three companies in China for its steel wire rod processing, two for the production of welding consumables, and one for copper sheet processing.